KAYAC, Inc. (3904) AI Stock Analysis

• Market Cap: ¥6.94B
• Dividend Yield: 0.88%
• Average Volume (3M): 44.52K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.50
• Revenue Growth: 1.91%
• EPS Growth: 9.12%
• Country: JP
• Employees: 612
• Sector: Communication Services
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 25.64
• Shares Outstanding: 16,108,800
• 10 Day Avg. Volume: 20,890
• 30 Day Avg. Volume: 44,523
• PEG Ratio: 0.13
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

KAYAC, Inc.'s overall stock score reflects a combination of mixed financial performance and technical indicators, as well as a high valuation. While the company has a strong equity base, recent challenges in revenue and cash flow, along with bearish technical signals and a high P/E ratio, suggest cautious investor sentiment. Addressing operational inefficiencies and improving cash flow will be crucial for enhancing stock performance.

KAYAC, Inc. Business Overview & Revenue Model

Company Description

KAYAC Inc. engages in the game-related business in Japan. It also operates a game community under the name Lobi; Tonamel, a tournament format where organizers manage their tournaments; and Pla-cole, a matching service for couples and wedding planners, as well as provides esports event planning and management, distribution, and production services under the Well Played name. In addition, the company offers home funeral, real estate, and trading services. KAYAC Inc. was founded in 1998 and is headquartered in Kamakura, Japan.

How the Company Makes Money

KAYAC Inc. generates revenue through a multi-faceted business model that includes mobile gaming, advertising, and digital content creation. A significant portion of its income comes from the development and distribution of mobile games, which monetize through in-app purchases and advertisements. Additionally, KAYAC leverages its creative expertise to offer digital marketing and content creation services to businesses, earning revenue from client projects and partnerships. The company's earnings are further bolstered by collaborations with other technology and entertainment firms, contributing to a diversified revenue stream.

KAYAC, Inc. Financial Statement Overview

Summary

KAYAC, Inc. exhibits a mixed financial performance. While past years showed strong growth and profitability, recent financials highlight challenges, including declining revenue and profitability, as well as cash flow issues. Strengths include a robust equity base and controlled debt levels, but operational and cash flow inefficiencies need addressing for sustained growth.

Income Statement

KAYAC, Inc. has demonstrated consistent revenue growth over the past few years, with a notable increase from 2019 to 2023. However, recent figures for 2024 indicate a decline in total revenue. Gross profit margin remains healthy, though net profit margin has decreased significantly in the most recent year due to a sharp drop in net income. EBIT and EBITDA margins have also weakened, reflecting reduced operational efficiency.

Balance Sheet

The company's balance sheet shows strong equity growth, with stockholders' equity increasing steadily. The debt-to-equity ratio is manageable, indicating a balanced leverage. However, the rise in total debt in 2024 suggests potential future risks. The equity ratio remains robust, reflecting a strong asset base relative to liabilities.

Cash Flow

Cash flow analysis reveals a concerning trend with negative operating and free cash flows in 2024, contrasting with previous positive figures. The free cash flow to net income ratio has turned negative, indicating a need for better cash management. Despite this, past years have shown strong free cash flow generation and satisfactory operating cash flow to net income ratios.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.73B	17.47B	16.50B	12.57B	8.75B
	Gross Profit
9.03B	9.23B	7.92B	5.93B	3.96B
	EBIT
358.02M	1.02B	1.21B	1.14B	744.58M
	EBITDA
706.00M	1.30B	1.51B	1.59B	923.32M
	Net Income Common Stockholders
149.05M	511.18M	779.84M	828.84M	505.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.96B	5.00B	4.13B	2.46B	2.51B
	Total Assets
12.88B	11.68B	10.97B	7.84B	7.02B
	Total Debt
3.27B	2.12B	2.34B	2.29B	2.77B
	Net Debt
-1.51B	-2.88B	-1.79B	-163.70M	258.25M
	Total Liabilities
6.85B	5.75B	5.63B	4.25B	4.39B
	Stockholders Equity
5.56B	5.46B	4.87B	3.31B	2.48B
Cash Flow		Free Cash Flow
-440.24M	974.02M	1.42B	352.09M	1.21B
	Operating Cash Flow
-219.66M	1.12B	1.77B	489.66M	1.30B
	Investing Cash Flow
-953.00M	-354.22M	-909.26M	13.41M	223.83M
	Financing Cash Flow
930.46M	-35.63M	931.60M	-572.15M	-263.61M

KAYAC, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 441.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3904, the sentiment is Positive. The current price of 441 is above the 20-day moving average (MA) of 415.60, above the 50-day MA of 423.62, and below the 200-day MA of 481.88, indicating a neutral trend. The MACD of 1.65 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3904.

KAYAC, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$14.09B	6.90	-3.35%	3.68%	2.44%	-36.27%
3904	57 Neutral	¥6.94B	16.80		0.88%	1.91%	9.12%
9601	53 Neutral	¥176.34B	―		0.23%	-1.70%	-122.01%
4316	46 Neutral	¥1.25B	24.17		―	7.89%	-300.06%